Which of the following best defines short-swing profits?

Question

Quizplus · Accepted Answer

Short-swing profits refer to profits made by a statutory insider within six months of each other on trades involving equity securities of his or her corporation. Statutory insiders include directors, officers and beneficial owners of more than 10% of any class of the company's equity securities. The purpose of the six-month rule is to prevent insider trading by these insiders, as they may have access to material non-public information that could affect the price of the company's securities. If an insider makes a trade within six months of a prior trade, any profit from the second trade is considered a short-swing profit and must be disgorged (returned) to the corporation.

Which of the Following Best Defines Short-Swing Profits